The government’s bailout of banks to save them from collapse was a “no-brainer” as it was necessary to buoy the economy, it has been argued.
However, it will lead to Britons paying the price in the form of increasing taxes, according to Aaron Turner, founder of UK housing website www.look4aproperty.com.
This may lead to some people experiencing debt management issues in the future, as Mr Turner explained that many will “have less disposable income to save for deposits”.
He described the level of the UK’s national debt as “bad news”, but claimed that the government had no choice but to support failing banks.
And if deflation does occur in Britain as a result of the turbulence, house prices will drop further, which could help people get a foot on the property ladder, Mr Turner added.
Meanwhile, a study by Unbiased.co.uk has concluded that many Brits wrongly believe that they are excluded from the mortgage market.
By Jamie Price